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Unformatted text preview: Beedie School of Business Simon Fraser University Bus 251 E1 (12-1) Solution to Homework Questions 1-37 a. A Slice of Life Statement of Earnings For the month of November, 2xxx Sales $23,870 Cost of ingredients used $7,130 Employee wages 5,120 Rent 1,200 Electricity 670 Water 420 Telephone 220 Total Expenses 14,760 Net Earnings $ 9,110 b. Other costs that Jason might have incurred in November not listed above include: 1. Depreciation of kitchen facilities and equipment 2. Income taxes 3. Depreciation of pizza delivery vehicles 4. Other employee benefit costs such as employer portion of CPP and EI 1-40 a. Item Classification Supply of ingredients Asset Wages owed Liability Bank loan owed to the bank Liability Cash held in chequing account Asset Cost of ovens & refrigerators Asset Prepaid rent for December Asset Common shares Shareholders’ equity Retained Earnings Shareholders’ equity 1-40 (continued) b. A Slice of Life Balance Sheet July 31, 2xxx Current assets Current liabilities Cash $ 3,490 Wages owed $ 1,460 Ingredients 670 Non-current liability Prepaid rent 1,200 Bank loan 11,000 Total current $ 5,360 Total liabilities $ 12,460 Shareholders’ equity Non-current assets Common Shares 5,000 Equipment 14,300 Retained Earnings 2,200 7,200 Total Liabilities and Total Assets $ 19,660 Shareholders’ Equity $19,660 c . It is unlikely that Jason will have an account called ‘accounts receivable’ since most of his sales will be on a cash basis. If customers purchased pizza and most of his sales will be on a cash basis....
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This note was uploaded on 02/18/2012 for the course BUSE 237 taught by Professor Sf during the Spring '12 term at Simon Fraser.
- Spring '12